According to the Zhitong Finance APP, CITIC Construction Investment has released a research report stating that the power sports industry is in a fast growth lane, with consumption upgrades and increased demand for leisure and entertainment driving the penetration of all-terrain vehicles and mid-to-large displacement motorcycle products. Chinese motorcycle companies have improved their product capabilities in recent years, with significant cost-performance advantages, and are expected to capture overseas market share. The product structure is continuously optimized, and market share and profit margins are steadily increasing. It recommends Chuanfeng Power (603129.SH), a leader in all-terrain vehicle exports expanding from high-end leisure to the mass transportation sector, and TAOTAO (301375.SZ), a strong brand in golf carts and a newcomer in humanoid robots. It also suggests paying attention to LONCIN (603766.SH) and other Chinese motorcycle export companies.
<h2>CITIC Construction Investment's main viewpoints are as follows:</h2>
Core Viewpoints
Overseas motorcycle companies disclosed their Q2 2025 financial reports, summarizing changes in the motorcycle industry and competitive landscape by answering six questions. The demand in emerging markets for two-wheelers is steadily growing, with Japanese and Indian companies achieving growth, while European and American brands continue to face pressure. There is a divergence in the performance of unit prices, per-unit profits, and profit margins among brands from different camps; in the four-wheeler sector, demand in Europe and America is under pressure, with leading brands affected by high inventory levels and intensified industry competition, resulting in a significant decline in profit margins. Second-tier brands benefit from good inventory management, achieving growth in volume and revenue. Looking ahead to 2025, motorcycle demand is expected to continue recovering, with Japanese companies guiding continued growth in motorcycle business, and Chinese companies likely to capture market share globally. The four-wheeler market is expected to grow in the medium to long term, with second-tier brands like Chuanfeng, Kawasaki, and TAOTAO actively positioning themselves to continue capturing market share.
Two-Wheelers: Steady Growth in Emerging Markets, Strong Performance by Japanese and Indian Companies
In Q2 2025, marginal improvement in growth rates was observed in Europe and America (Italy, Spain, Germany, France, the UK, Turkey recorded year-on-year changes of +0.6%/+11.0%/-20.1%/-8.2%/-15.4%/-15.0%), while India and Southeast Asia maintained steady growth (India, Indonesia, Vietnam, Thailand recorded year-on-year changes of -6.2%/-1.0%/+1.3%/+1.7%). The Latin American market maintained a high growth trend (Brazil, Argentina, Colombia, Mexico recorded year-on-year changes of +10.9%/+39.7%/+31.1%/+18.5%). Benefiting from the growth in emerging market demand and capturing share in mature markets, Japanese and Indian brands achieved continuous growth in sales and revenue both domestically and in export markets; however, demand in high-end markets like Europe and America is under pressure, and competition is intensifying, leading to sales pressure on local brands. The consumption structure of motorcycles is changing, with intensified competition in mature markets, resulting in a divergence in the performance of unit prices, per-unit profits, and profit margins among European, American, Japanese, Indian, and Chinese companies.
Four-Wheelers: Declining Demand in Europe and America, Bright Performance by Second-Tier Brands
Due to inflation, demand in Europe and America is under pressure. Leading brands are still adopting promotional strategies to clear channel inventory due to high inventory levels, and price competition along with increased costs has led to a decline in profit margins for leading manufacturers. In Q2 2025, Polaris's all-terrain vehicle business saw a high single-digit decline in revenue, with profit margins continuing to decrease; Q1 Bombardier experienced a mid-single-digit decline with a significant drop in profit margins; Q2 Yamaha saw a double-digit decline, continuing to incur losses. In contrast, second-tier brands like Kawasaki benefited from capacity release and new product launches, achieving growth in all-terrain vehicle volume and revenue
Chinese Enterprises: A New Journey of Globalization, CFMOTO/LONCIN/TAOTAO Reach New Heights
In Q2 2025, Chinese enterprises are actively laying out overseas markets to seize global market share, with CFMOTO/LONCIN/Qianli/Linhai/TAOTAO achieving continuous growth in revenue and profit. Among them, CFMOTO/LONCIN/TAOTAO have both revenue and profit reaching historical single-quarter highs. At the same time, Qianli/TAOTAO/LvTong are beginning to explore fields such as AI, robotics, and semiconductors, as Chinese motorcycle companies gradually develop a second growth curve based on the growth of their main business.
Outlook: Japanese Companies Guide Continued Growth in Motorcycles, Four-Wheel Brand Camp Will Differentiate
In the two-wheeler sector, Japanese companies predict that motorcycle volume and value will continue to grow in 2025. Honda, Suzuki, and Kawasaki expect growth in emerging markets, while Yamaha anticipates growth in both emerging and mature markets. It is expected that global market competition will intensify, and Chinese companies are likely to seize market share in the global market. In the four-wheeler sector, leading brands are experiencing a decline in market share due to weakened demand, high inventory, and intensified competition. However, the North American market is expected to grow in the medium to long term, with second-tier brands like Kawasaki and CFMOTO actively positioning themselves. TAOTAO is expected to continue increasing its market share in the golf cart sector, likely outperforming the industry and leading brands, with a continuous increase in share.
Risk Warning: Overseas demand may fall short of expectations, risks of freight and exchange rate fluctuations, trade friction, and increased tariffs

301345

603129

603766

CITIC Construction Investment released a research report indicating that the power sports industry is in a rapid growth phase, with changes in motorcycle consumption structure and robust demand in emerging markets. It recommends companies such as CFMOTO, expecting Chinese motorcycle companies to capture overseas market share. Japanese and Indian companies are performing strongly, while European and American brands are under pressure. Looking ahead to 2025, motorcycle demand will continue to recover, and the four-wheeled vehicle market also has medium to long-term growth potential

CITIC Construction Investment: Demand for two-wheeled vehicles in emerging markets is steadily growing, recommending CFMOTO and others